Same Sex Spouse and Domestic Partner (Same- or Opposite-Sex) Benefits

Policy Information

Issue Date: August 20, 2007

Primary Contact: Director of Human Resources

Responsible Member of Directorate: Vice President for Finance & Administration

Responsible Office: Human Resources

Policy Statement

Participants in WHOI benefits may enroll a variety of eligible family members for coverage. This includes same-sex spouses (currently only recognized in the state of Massachusetts) and same- or opposite-sex domestic partners and their dependent child(ren).

Reason for Policy

The Woods Hole Oceanographic Institution is committed to attracting and supporting a diverse workforce. WHOI recognizes that with a diverse workforce comes a broad array of personal circumstances and individual needs. The definition of family for one employee can be different - but equally as significant - from that of another. To reinforce its commitment, the Institution strives to offer employees and their family's equal benefits to the extent allowable.

Your
unmarried dependent child(ren) and the dependent child(ren) of your spouse or
domestic partner, who are full-time students and/or federal tax dependents are
eligible until the day before their 26th birthday. Children who lose tax
dependent status before their 26th birthday or who stop attending school on a
full-time basis are eligible for a two-year (tax year) coverage extension.

Same-sex Spouses and Domestic Partners

A same-sex spouse is a person of the same sex who is legally married to a
WHOI employee. Currently, same-sex marriage is recognized only in the state of Massachusetts.

Domestic partners are defined as two people who meet all of the following
requirements:

Are the
same or opposite sex, and

Share a
committed relationship and intend to remain in the relationship indefinitely,
and

Share a
primary residence, and

Are age 18
or older, and

Are not
blood relatives, and

Are not
related by marriage, and

Share joint
responsibility for each other's welfare, and

Are each
other's sole domestic partner, and

Are not
legally married to each other or any other person, and

Are legally
able to enter into a contract

In addition, domestic partners must have shared, for the previous 12
months, at least three of the seven indicators of emotional and financial
interdependence listed below:

A joint
lease, mortgage, or deed

Joint
ownership of a vehicle

A joint
checking or credit account

The
designation of domestic partner as beneficiary of life insurance or retirement
benefits

The
designation of domestic partner as a beneficiary in a Will

A Domestic
Partner Certificate from local government, if available

Shared
household expenses

Affidavit of Domestic Partnership

Before a domestic partner (and his or her dependent children) can be
enrolled in WHOI benefits, the employee and his or her domestic partner must
complete and submit an Affidavit of Domestic Partnership to the Human Resources
Office attesting that their relationship meets the requirements as outlined
above.

This information will be used by WHOI for
the sole purpose of determining eligibility for domestic partner benefits and
will be treated as strictly confidential insofar as the law allows.

Benefits Extended to Same-Sex Spouses and Domestic Partners

The following benefits are extended to
same-sex spouses and domestic partners (and their dependent children) of
eligible WHOI employees:

Health
Insurance (medical and dental)

Important
to Note: According to the IRS, employees may not be reimbursed for health
and/or dependent care expenses for their same-sex spouse or domestic partner
(and/or their children) through a Flexible Spending Account unless they are
considered the employee's tax dependents under IRS Code Section 152. Employees
may want to consult a tax advisor to confirm if any person meets the criteria
for tax dependents. More details on tax-qualified dependents are provided under
‘Special Tax Considerations'

Family Life
Insurance

Beneficiaries
- Same-sex spouses and domestic partners (and/or their dependent children) may
be named as bene­ficiaries on an employee's policies for Life Insurance and
Accidental Death & Dismemberment (AD&D) Insurance

Employee
Assistance Program

Work and
Family Life Benefits, Inc. (Resource and referral services)

Education
Loan for Children of Employees - Available for children of employees and/or the
dependent children of their domestic partners

Leave
Policies - Same-sex spouses and domestic partners (and their dependent
children) are included under the definition of family member under the Extended
Leave of Absence policy and the Paid Absences policy, which covers bereavement
leave

Important
to Note: Although the federal Family and Medical Leave Act (FMLA) does not
apply to same-sex spouses and domestic partners, the Institution provides
FMLA-like coverage

Family
Illness Days

Dependent
Care Subsidy Program

Eligibility
of employees and terms and conditions of the above benefits are governed by the
current Institution policies and plan documents regarding provision of those
benefits.

Special Tax Considerations

Under IRS regulations, there are different financial implications for
covering a same-sex spouse or domestic partner. If an employee is considering
providing benefit coverage for his or her same-sex spouse or domestic partner
and his or her dependent child(ren), they should be aware that that there are
important tax implications to consider. Since requirements for an individual to
satisfy the definition of a tax dependent under the Internal Revenue Code can
be complex, employees should consult a tax professional for advice on their own
personal situation.

According to IRS regulations, if an employee cannot consider their same-sex
spouse or domestic partner and his or her dependent child(ren) as tax
dependents for federal income tax purposes, the employee's annual cost for
covering these individuals will be more than the cost for covering an
opposite-sex spouse or the employee's own dependent child(ren).

If the employee is covering a same-sex spouse or domestic partner who is
NOT considered a tax-qualified dependent, the cost of coverage for that
individual will be deducted from the employee's pay on an after-tax basis. (The
cost for covering the employee will continue to be deducted on a pre-tax
basis.)

In addition, the portion of any medical or dental coverage paid for by WHOI
for the employee's same-sex spouse or domestic partner and his or her
child(ren) must be considered additional income in which the employee is
required to pay federal and state tax (except Massachusetts for a same-sex
spouse and his or her children). This additional income will be reflected on
the employee's W2 form and additional taxes will be withheld from their
paycheck.

If an employee's same-sex spouse or domestic partner (and his or her
children) qualifies as a tax dependent as defined by the IRS, monthly
contributions can be deducted from the employee's pay on a pre-tax basis and
there are no tax consequences.

In order to
have pre-tax deductions apply to coverage for a same-sex spouse or domestic
partner (and his or her children), the employee must submit a copy of their
most recent federal income tax form to the Human Resources Office.

Divorce and Dissolution

Within 31 days of a divorce of a same-sex marriage, the employee must
submit a divorce decree to the Human Resources Office.

Within 31 days of the dissolution of a domestic partnership, the employee
must submit a Termination of Domestic Partnership form to the Human Resources
Office that attests to this change in status.

In either the case of a divorce of a same-sex marriage or dissolution of a
domestic partnership, the same-sex spouse or domestic partner will be given the
opportunity to continue their coverage (and any dependent coverage).

Important
to Note: Unless
the same-sex spouse or domestic partner (and his or her children) are the
employee's dependent as defined by the IRS Code, federal COBRA rights are not
available and will not apply. However,
although federal COBRA rights may not apply, the Institution's health and
dental plans do provide an option for continued coverage.

Procedures

Initiating Benefits for a Same-Sex Spouse

Employees who wish to initiate the process for receiving
benefits for their same-sex spouse (and his or her dependent children) must
submit a legal marriage certificate to the Human Resources Office.

Initiating Benefits for a Domestic Partner

Employees who wish to initiate the process for receiving
benefits for their domestic partner (and his or her dependent children) must
complete and submit an Affidavit of Domestic Partnership to the Human Resources
Office.

Making Changes During the Year

After the annual Open Enrollment period (or initial elections for new
hires), changes during the plan year will be allowed only under one of these
qualifying events:

Marriage,
divorce, legal separation or annulment, or dissolution of a domestic
partnership

Addition of
a newly eligible domestic partner

Birth or
adoption of a child (or placement of a child for adoption)

Death of a
spouse, domestic partner, dependent

Ineligibility
of a dependent (i.e., child loses tax dependence before their 26th birthday or
stops attending school on a full-time basis)

A change in
spouse or domestic partner's employment, if it results in a loss or gain in
eligibility for coverage

A move out
of your health plan's network service area

If an employee wishes to make a change during the year, s/he must contact
Human Resources within 31 days of the qualifying event. If Human Resources is not notified within 31
days, changes must wait until the next Open Enrollment period.

Divorce

Within 31 days of a divorce of a same-sex marriage, the employee must
submit a divorce decree to the Human Resources Office.

Dissolution of Domestic Partnership

Within 31 days of the dissolution of a domestic partnership, the employee
must submit a Termination of Domestic Partnership form to the Human Resources
Office that attests to this change in status.

Forms

The following forms may need to be completed in accordance with this policy.